Financial Daily: U.S.-Iran tensions combined with strong tech sector performance lifted U.S. stocks, while European equities pulled back; crude oil prices diverged

- Key Focus

– Iran's Supreme Leader stated that Iran and the regional Axis of Resistance have achieved victory in the 'third imposed war,' and regional countries will no longer serve as shields for U.S. military bases.

– U.S. forces conducted self-defense strikes in the Strait of Hormuz area, targeting vessels deploying torpedoes and Iranian missile launch sites.

– Ferrari launched its first all-electric sports car.

– Multiple countries, including France and Italy, are pushing the EU to reform its trade defense instruments, with a focus on addressing low-priced Chinese goods.

Content compiled by 'Harbor Family Office,' a subsidiary of Henry Jia Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[U.S. Market] The three major U.S. stock indices ended mixed, with both the S&P and Nasdaq closing at record highs.

On Tuesday, renewed conflict between the U.S. and Iran in the Middle East added uncertainty to expectations of a peace agreement. However, both sides remained relatively restrained. Coupled with strong performance in tech sectors such as semiconductors, the S&P 500 and Nasdaq Composite both reached new record highs, resulting in mixed moves across the three major U.S. indices and a modest rise in market panic sentiment.

At the close, the S&P 500 rose 0.61% to 7,519.12 points; the Nasdaq Composite gained 1.19% to 26,656.181 points; and the Dow Jones Industrial Average fell 0.23% to 50,461.68 points. The VIX fear index rose 2.53% to 17.01 points. The Philadelphia Semiconductor Index, boosted by a surge in Micron Technology, climbed 5.53% to 12,876.906 points, continuing to set a new all-time high.

The U.S. tech mega-cap index rose 0.22%. Among its components, Tesla gained 1.78%, Alphabet A rose 1.54%, Meta increased 0.34%, Apple declined 0.16%, NVIDIA fell 0.22%, and Microsoft dropped 0.61%. The Nasdaq Golden Dragon China Index rose 0.57% to 6,549.12 points. Among notable Chinese ADRs, Shengda Technology surged approximately 29%, and UP Fintech Holding (Tiger Brokers) rebounded with a 14.2% gain. In individual stocks, Taiwan Semiconductor rose 1.96%, Circle plummeted 7.89%, Micron Technology soared 19.29%, and aerospace and defense company Momentus surged over 109%.

[European Market] Major European equity indices broadly pulled back.

On Tuesday, major European equity indices broadly retreated. At the close, the pan-European STOXX 600 index fell 0.57% to 628.01 points, and the Euro STOXX 50 index dropped 1.18% to 6,064.15 points.

Germany's DAX 30 Index fell 0.80% to close at 25,184.89 points; France's CAC 40 Index dropped 1.03% to close at 8,173.11 points; the UK's FTSE 100 Index rose 0.24% to close at 10,491.39 points; and Italy's FTSE MIB Index declined 0.64% to close at 49,899.22 points.

[Asian Markets] Asian equities faced downward pressure on Tuesday, with South Korea’s benchmark index surging over 2.5% in a catch-up rally.

Escalating tensions between the U.S. and Iran weighed on Asian markets broadly, while South Korea’s index posted a catch-up gain on Tuesday following Monday’s market holiday. At the close, Japan’s Nikkei 225 fell 0.25% to 64,996.09 points; South Korea’s KOSPI rose 2.55% to 8,047.51 points; Singapore’s Straits Times Index declined 0.74% to 5,032.83 points; and Thailand’s SET Index gained 0.20% to 1,553.36 points.

[Hong Kong Market] All three major Hong Kong indices closed lower, with the Hang Seng Tech Index down more than 2%.

On Tuesday, Hong Kong’s three main equity indices ended mixed, with the Hang Seng Tech Index rising over 1.5%. At the close, the Hang Seng Index edged down 0.03% to 25,599.449 points; the Hang Seng Tech Index fell 1.59% to 4,946.88 points; and the Hang Seng China Enterprises Index gained 0.30% to 8,576.89 points. In sector performance, large-cap tech and internet stocks diverged: Lenovo surged over 15%, NetEase rose 4.30%, and Meituan declined 3.13%. Semiconductor stocks showed strength, as Huawei’s ‘Tao’s Law’ redefined the path for semiconductor performance improvements—Hua Hong Semiconductor jumped 10.45%, and Innoscience hit its daily trading limit. Non-ferrous metal stocks generally advanced, with Aluminum Corporation of China (Chalco) up 9.29%.

[A-Share Market] Mainland China’s A-share market rebounded in late trading to recover earlier losses, with the three major indices ending mixed.

Mainland China’s A-share market experienced significant intraday volatility but recovered its losses during the final trading session, leaving the three major indices mixed at the close. The Shanghai Composite Index fell 0.17% to 4,145.37 points; the Shenzhen Component Index rose 0.12% to 15,876.16 points; and the ChiNext Price Index gained 0.54% to 4,043.07 points. In sector and thematic performance, PCB-related stocks continued to strengthen due to stable and robust demand—Shengyi Electronics surged 20%, while Zhongjing Electronics and Shengyi Technology hit their daily trading limits. The non-ferrous metals sector was lifted by aluminum stocks in afternoon trading, after Guinea—the world’s largest bauxite producer—announced plans to regulate bauxite exports; Aluminum Corporation of China (Chalco) reached its daily trading limit, while Nanshan Aluminum and Hongqiao Holding both rose over 8%. Chip and semiconductor stocks declined across the board, with Focuslight Technologies and Yonggui Electronics each falling more than 10%. Defense and commercial aerospace sectors underperformed.

- Bonds

[U.S. Treasuries] U.S. Treasury yields retreated, with the 10-year yield dropping 6.92 basis points.

U.S. Treasury yields continued to decline as markets anticipated the resumption of shipping through the Strait of Hormuz. At the New York close, the 10-year U.S. Treasury yield fell 6.92 basis points to 4.4886%; the 2-year yield dropped 7.65 basis points to 4.0445%; and the 30-year yield decreased 4.19 basis points to 5.0222%.

[Non-U.S. Bond Markets] Sovereign bond yields in major European countries rose.

Sovereign bond yields in major European countries rose, with Germany's 10-year yield up 3.3 basis points to 2.979%, and its two-year yield up 5.3 basis points to 2.589%. The UK's 10-year gilt yield fell 0.19 basis points to 4.878%. France's 10-year OAT yield rose 3.2 basis points, Italy's 10-year BTP yield increased by 4.8 basis points, and Spain's 10-year bond yield climbed 3.4 basis points.

[China Bond Market] Treasury futures rose across the board on Tuesday

On Tuesday, treasury futures rose across the board. At the close, the front-month contract for 30-year treasury futures gained 0.19%, the 10-year contract rose 0.03%, the 5-year contract advanced 0.01%, and the 2-year contract increased by 0.02%.

– Foreign exchange

[US Dollar] The dollar index edged higher, while the British pound fell 0.45%

The US dollar fluctuated upward throughout the day. At the New York close, the ICE U.S. Dollar Index rose 0.16% to 99.16, while the Bloomberg Dollar Spot Index gained 0.15% to 1,201.38.

The US dollar strengthened broadly against major global currencies: USD/JPY rose 0.26% to 159.32; EUR/USD declined 0.12% to $1.1629; GBP/USD dropped 0.45% to $1.3445.

[Renminbi] USD/CNH traded at 6.7852

At the New York close, the offshore renminbi (CNH) weakened by 8 pips from the previous session’s close to 6.7852 against the US dollar. The onshore renminbi (CNY) depreciated by 33 pips from the prior trading day’s close to 6.7870 per dollar.

[Digital Assets] Bitcoin and Ethereum declined

Bitcoin and Ethereum declined on Tuesday. Bitcoin followed an inverted V-shaped intraday pattern, surging to $78,000 before sharply retreating to around $75,500. Ethereum fell nearly 1.5%.

– Products

[Energy] U.S. crude oil futures prices fell more than 2.5%

Crude oil prices diverged amid the uncertain U.S.-Iran geopolitical situation. At the New York close, U.S. crude oil futures dropped 2.81%, settling at $93.89 per barrel; Brent crude oil futures rose 3.58%, settling at $99.58 per barrel.

[Precious Metals] Precious metal prices broadly declined, with spot gold returning to $4,500

Precious Metals:Gold prices declined. At the New York close, spot gold fell 1.45% to $4,504.35 per ounce; U.S. gold futures dropped 0.30% to $4,542.50 per ounce.

Metals Futures Market:At the New York close, spot silver fell approximately 1.51% to $76.9010 per ounce; U.S. silver futures rose about 1.4% to $77.250 per ounce. U.S. copper futures gained around 0.7% to $6.4250 per pound. Spot platinum declined 0.37%, and spot palladium fell 0.9%.

[Disclaimer]

The above content is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), summarized from various market information sources. Harbor Family Office and its group members did not participate in preparing the content nor explicitly or implicitly endorse it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently assess and judge this material and are advised to seek professional opinions before making any related investments or trades. Without authorization, no one may reproduce, copy, or publish this content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and related providers.

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